26-Mar-2020: Tesserent completes acquisition of north BDT
28-Apr-2020: Appendix 4C - quarterly
This is straw #1 (of 2):
QUARTERLY REVENUE EXCEEDS EXPECTATIONS
The Company is pleased to announce that its actual Q3 revenue of $8.3m exceeded its budgeted revenue of $7.4m by $900k (or 12%).
ON TARGET TO ACHIEVE A REVENUE RUN RATE OF $40M PER ANNUM BY 30 JUNE 2020
INCREASED CUSTOMER RECEIPTS AND STRONG CASH POSITION
Strong organic growth has seen the group’s customer base continue to grow to in excess of 800 customers, supported over the last three years including 15 Federal Government departments and agencies as a result of the north BDT acquisition. This has translated to significant sales wins during the quarter across key products of firewall, SIEM and security consulting. Most notably, the Company secured $3m Federal Government, multi-year contracts.
ACQUISITION OF NORTH BDT
Tesserent’s transformation to Australia's #1 ASX-listed end-to-end Cyber Security company in FY20 continues with the north BDT acquisition being completed in March 2020.
north BDT is a Canberra-based security consulting firm specialising in providing Cyber Security, digital strategy and governance, end-to-end application development to Federal Government clients. The acquisition provides the Company with the opportunity to leverage north’s existing customer relationships for cross sales into Tesserent’s cyber offerings. north BDT has a strong operating record, having delivered $8.3m revenue to 31 March 2020 and is projected to exceed $12m in their current financial year. The Company is continuing to explore additional acquisitions and will keep the market updated as these initiatives progress.
As per the Company’s COVID-19 Update to the market on 16 April 2020, the Company has recently secured new business wins of more than $5 million. This, in addition to significant existing lockedin, long-term contracts with multiple Federal Government departments and agencies and multiyear managed security services income means the Company expects minimal negative impact on its financial performance in the June quarter.
The Company’s strong cash position, new business wins and existing contracted revenue sees the business well placed to weather the current economic conditions over the short to medium term. Should this situation change, the Company will keep the market informed.
The Board and Management team are focused on continuing to build Tesserent’s position as Australia’s #1 ASX-listed Cyber Security provider by achieving several important goals over the coming months:
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See separate straw (straw #2) for "IMPACT OF VIRGIN AUSTRALIA AIRLINES (VIRGIN) PLACED IN VOLUNTARY ADMINISTRATION (VA)"
This is Straw #2 (of 2) concerning TNT's March 2020 Quarterly Report [it wouldn't fit in straw #1]
IMPACT OF VIRGIN AUSTRALIA AIRLINES (VIRGIN) PLACED IN VOLUNTARY ADMINISTRATION (VA)
Virgin is a significant customer for our leading Splunk practice, Rivium. As a result of Virgin being placed into VA, there is a potential reduction of Rivium’s FY20 revenue of up to $1.5m. This includes a limited exposure to invoices that are currently with the administrator (<$100k) the more significant impact is the work that was scheduled and or expected to be delivered in Q4 of FY20. We look forward to Virgin coming out of VA quickly and in a stronger position and look forward to working with them in the future.
The potential loss of revenue does not impact Tesserent’s expectation of $10m revenue in Q4 2020.